Correlation Between Robinsons Retail and Bank of the
Can any of the company-specific risk be diversified away by investing in both Robinsons Retail and Bank of the at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Robinsons Retail and Bank of the into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Robinsons Retail Holdings and Bank of the, you can compare the effects of market volatilities on Robinsons Retail and Bank of the and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in Robinsons Retail with a short position of Bank of the. Check out your portfolio center. Please also check ongoing floating volatility patterns of Robinsons Retail and Bank of the.
Diversification Opportunities for Robinsons Retail and Bank of the
0.36 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Robinsons and Bank is 0.36. Overlapping area represents the amount of risk that can be diversified away by holding Robinsons Retail Holdings and Bank of the in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bank of the and Robinsons Retail is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on Robinsons Retail Holdings are associated (or correlated) with Bank of the. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bank of the has no effect on the direction of Robinsons Retail i.e., Robinsons Retail and Bank of the go up and down completely randomly.
Pair Corralation between Robinsons Retail and Bank of the
Assuming the 90 days trading horizon Robinsons Retail Holdings is expected to generate 0.98 times more return on investment than Bank of the. However, Robinsons Retail Holdings is 1.02 times less risky than Bank of the. It trades about -0.28 of its potential returns per unit of risk. Bank of the is currently generating about -0.34 per unit of risk. If you would invest 3,900 in Robinsons Retail Holdings on September 1, 2024 and sell it today you would lose (320.00) from holding Robinsons Retail Holdings or give up 8.21% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Robinsons Retail Holdings vs. Bank of the
Performance |
| Timeline |
| Robinsons Retail Holdings |
| Bank of the |
Robinsons Retail and Bank of the Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Robinsons Retail and Bank of the
The main advantage of trading using opposite Robinsons Retail and Bank of the positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Robinsons Retail position performs unexpectedly, Bank of the can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Bank of the will offset losses from the drop in Bank of the's long position.| Robinsons Retail vs. Top Frontier Investment | Robinsons Retail vs. Manila Mining Corp | Robinsons Retail vs. Premiere Entertainment | Robinsons Retail vs. Philex Mining Corp |
| Bank of the vs. GT Capital Holdings | Bank of the vs. Allhome Corp | Bank of the vs. Jollibee Foods Corp | Bank of the vs. LFM Properties Corp |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Transaction History module to view history of all your transactions and understand their impact on performance.
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